Cheetah Mobile, Inc. Class Action Lawsuit
- Company Name
- Cheetah Mobile, Inc.
- Stock Symbol
- Class Period
- March 25, 2019 to February 20, 2020
- Central District of California
The Cheetah Mobile, Inc. class action lawsuit charges Cheetah Mobile and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Cheetah Mobile securities between March 25, 2019 and February 20, 2020, inclusive (the “Class Period”). The Cheetah Mobile class action lawsuit was commenced on June 25, 2020 in the Central District of California and is captioned Azure Funds LLC v. Cheetah Mobile, Inc., No. 20-cv-05696.
Cheetah Mobile is a mobile Internet company that offers mobile utility products (such as Clean Master and Cheetah Keyboard), casual games (such as Piano Tiles 2, Bricks n Balls), and live streaming product Live.me. Cheetah Mobile provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to targeted mobile users and global promotional channels.
The Cheetah Mobile class action lawsuit alleges that defendants failed to disclose to investors that: (i) certain of Cheetah Mobile’s apps were not compliant with the terms of its agreements with Google; (ii) as a result, there was a reasonable likelihood that Google would terminate its advertising contracts with Cheetah Mobile; (iii) as a result of the foregoing, Cheetah Mobile’s ability to attract new users would be adversely impacted; (iv) as a result, Cheetah Mobile’s revenue was reasonably likely to decline; and (v) as a result of the foregoing, defendants’ positive statements about Cheetah Mobile’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Then, on February 21, 2020, Cheetah Mobile disclosed that its Google Play Store, Google AdMob, and Google AdManager accounts had been disabled on February 20, 2020 “because some [Cheetah Mobile] apps had not been compliant with Google policies, resulting in certain invalid traffic.” On this news, the price of Cheetah Mobile shares fell nearly 17%.
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